Hi all. This trade journal is about a trade I took during Nov 2023. INDUSIND. Though the banking stocks were performing poorly (Except PSU Banks), INDUSIND showed some leadership qualities at that time breaking from a Volatility Contraction (VCP) type of pattern. The trade performed good for some time but later it turned down and I was stopped out.
I closed the trade almost cost to cost. Though this trade is not actually a loss I am adding this in losing trades since the trade didn’t work out well for me and the profit is zero.
See the daily chart of INDUSIND- Beautiful VCP kind of pattern.
WEEKLY CHART :
The estimates were good and the sales and EPS were increasing QOQ (Quarter to Quarter):
The stock was going on well. But something changed suddenly. The stock plummeted down and broke down the 50 DMA with volume rise and RS going into negative zone. BANK NIFTY also faced some severe gap downs. There is no point in hoping for the stock to come up. Let me exit and then decide whether I should scale in later.
Capital preservation is the ultimate key.
Also see the RS Line going down and down.
See the chart of BANK NIFTY on the day of my exit:
At the start of a pattern breaking out it looks beautiful. Gives us so much confidence.
But, our confidence is nothing in front of the market. Only thing that is under my control is CONTROLLING THE RISK.
When the trade started going down, I was nimble enough to cut my trade at cost to cost.
Stock selection could have been better since the sector tailwind was not there in this case. Nifty Bank was actually an underperformer. Should have selected some good sectors.
I publish my trades from time to time in my trading journal series. Read them if interested.